India’s growth story is entering a powerful phase, and NRIs are uniquely placed to participate in it. India’s GDP is expanding at one of the fastest rates among major economies, supported by strong domestic demand, reforms, and a clear long-term development roadmap.
India’s GDP Surge: The Macro Picture
India has maintained its position as the fastest-growing major economy, with real GDP growth remaining strong through 2025 and the July–September 2025 quarter (Q2 FY 2025-26) posting robust expansion of 8.2%. Recent projections from institutions such as the RBI and CRISIL now place India’s growth for FY 2025-26 in the 7.0–7.3% range, reflecting upgraded forecasts after a strong first half.
This momentum is increasingly structural rather than cyclical, underpinned by formalization of the economy, higher tax compliance, and sustained government capital expenditure. Industry leaders and analysts suggest that India is poised to add about 1 trillion dollars to its GDP every 18 months in the coming decade, highlighting the compounding effect of high growth on a rising base.
Structural Drivers NRIs Should Watch
Domestic consumption remains India’s primary engine, powered by a young population, rapid urbanization toward the 50% mark, and the expansion of the middle class. Reforms such as the Goods and Services Tax (GST), production-linked incentive (PLI) schemes, and continuing improvements in ease of doing business are deepening the formal sector and attracting both global and NRI capital.
On the supply side, large-scale investment in infrastructure; roads, railways, ports, and digital connectivity, is improving productivity and lowering logistics costs. India has also crossed a key clean-energy milestone, with over 50% of installed power capacity now from non-fossil fuel sources, totaling roughly 259 GW after strong additions in 2025.
Why India’s Growth Matters to NRIs
For NRIs, India’s high and relatively stable growth offers a combination of return potential and diversification that is often hard to replicate in mature markets. Equities, debt, real estate, and other assets in India tend to behave differently from portfolios concentrated in the US, UK, or Gulf, helping balance global risk. A growing economy typically supports rising corporate earnings, healthier banking balance sheets, and broader asset price appreciation over time, which can enhance long-term wealth creation.
There is also a currency angle. While the rupee experiences periods of volatility, a strong growth outlook and improving external indicators can, over the long run, support relative stability versus many peers. For NRIs investing from stronger currencies, this can create a dual potential source of return: asset growth in India plus possible rupee gains over long horizons, though both outcomes remain uncertain and market driven.
Evidence of Rising NRI Participation
NRI interest in India is visible in hard numbers. NRI deposits surged by about 43% in 2024, with roughly 13.3 billion dollars of net inflows between April and December 2024, supported by attractive interest rates and confidence in India’s macro stability. In 2025, inflows into such deposits have moderated as global interest differentials narrowed, yet overall NRI participation in Indian assets remains robust, increasingly tilted toward equities and mutual funds.
Beyond deposits, NRIs are using regulated channels to invest in mutual funds, listed equities, and bonds via NRE/NRO accounts and portfolio investment schemes. These routes provide exposure to sectors most closely aligned with India’s growth drivers, including financial services, IT, manufacturing, infrastructure, and renewables.
Strategic Opportunity Areas
NRIs can align their portfolios with India’s growth engines across multiple asset classes that link directly to the GDP and reform story.
| Sector | Growth Factor | NRI Benefit |
|---|---|---|
| Mutual Funds/Stocks | Market returns riding 7%+ GDP growth outlook | Professional management, LTCG tax efficiency |
| Real Estate | Urbanization trending toward 50% of population | Rental yields and long-term capital appreciation |
| Deposits/Bonds | Higher interest rates than many developed markets | Forex hedging and relatively stable income |
| Green Energy | Over 50% non-fossil capacity (~259 GW) | Sustainable, long-duration growth exposure |
Mutual funds and direct equities allow NRIs to participate in broad market performance or focused themes such as banking, consumption, or infrastructure. Real estate in growing Tier-1 and Tier-2 cities such as Pune, Hyderabad, Ahmedabad, and Kochi offers both financial potential and emotional value, especially for NRIs considering partial or eventual relocation.
Accessing India’s Growth as an NRI
NRIs typically invest through NRE and NRO bank accounts, using SEBI-regulated intermediaries, banks, and dedicated NRI platforms. Popular options include NRI-specific offerings on platforms, as well as international brokers that route investments into Indian markets, subject to KYC, FATCA, and country-specific rules.
Using compliant, NRI-focused platforms simplifies documentation, taxation, and repatriation, which is crucial when managing assets across jurisdictions. Coordinating with tax advisors in both India and the country of residence helps ensure that double taxation avoidance agreements and local tax rules are properly applied.
Balancing Opportunity With Risk
Despite the attractive macro backdrop, investments in India carry risks that NRIs should recognize. Equity and real estate markets can be volatile, and short-term returns may diverge sharply from headline GDP growth, especially during global risk-off phases or domestic policy shifts. Currency movements can work against investors in certain periods, with rupee depreciation sometimes offsetting local market gains over the short to medium term.
Regulations, tax rules, and sector-specific policies in India are still evolving and may change the relative attractiveness of instruments or sectors over time. Given these factors, NRIs are better served by a diversified, long-term strategy aligned with their risk profile and by consulting qualified financial and tax advisors before making or modifying investment decisions.
